What is the difference between trade, commerce and industry - Accountancy -

Question

What is the difference between trade, commerce and industry?

Komal Verma · Accepted Answer

Basis
of Difference

Industry

Trade

Commerce

Meaning

It is a
unit that involves the activities related to the manufacturing and
production of various goods and services

It
refers to the exchange of goods and services produced by the
intended parties

It
involves the exchange of goods and services with a motive to earn
higher profits by transferring them from their place of production
to the market place

Scope

It
includes all the activities relating to the conversion of raw
materials or semi-finished goods into the finished or final
goods

It has
a narrower scope of exchanging goods and services

It has
wider scope of exchange as it involves transportation and shipment
of goods

Amount
of Capital

It
requires huge amount of capital for production of goods and
services

It
requires moderate amount of capital for maintaining the stock or
inventory

It
requires comparatively less capital

Demand
v/s Supply

It
depicts the supply side of goods and services

It
depicts both demand as well supply sides of goods and
services

It
depicts the demand side of goods and services

Basis of Difference	Industry	Trade	Commerce
Meaning	It is a unit that involves the activities related to the manufacturing and production of various goods and services	It refers to the exchange of goods and services produced by the intended parties.	It involves the exchange of goods and services with a motive to earn higher profits by transferring them from their place of production to the market place.

Scope	It includes all the activities relating to the conversion of raw materials or semi-finished goods into the finished or final goods.	It has a narrower scope of exchanging goods and services.	It has wider scope of exchange as it involves transportation and shipment of goods.

Amount of Capital	It requires huge amount of capital for production of goods and services.	It requires moderate amount of capital for maintaining the stock or inventory.	It requires comparatively less capital.

Demand v/s Supply	It depicts the supply side of goods and services.	It depicts both demand as well supply sides of goods and services.	It depicts the demand side of goods and services.